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*The Combination is Expected to Enhance Integrated Public Safety and Cybersecurity Solutions and Increase Our Revenue and Cross-Selling Opportunities*
MCLEAN, Va., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) (“Cycurion” or the “Company”), a leading provider of AI-driven cybersecurity, IT security solutions, and managed services, today announced that it has entered into a Memorandum of Understanding (“MOU”) to acquire the video-solutions division of Kustom Entertainment, Inc. (NASDAQ: KUST) (“Kustom”), a pioneer in mobile video surveillance technologies, including body-worn cameras, in-car video systems, and digital evidence management solutions for law enforcement, public safety, and commercial sectors.
The contemplated transaction is valued between $6.0-8.4 million based on the pro forma financial information agreed upon by the parties, with the purchase price to be paid in $1.0-1.4 million of cash and the remainder in Cycurion preferred stock. This enables Cycurion to engage in what it believes is a highly accretive acquisition with minimal cash outlay. The addition of Kustom’s video-solutions division is anticipated to increase Cycurion’s revenues by approximately $5.1 million, or 35% in 2026 compared to 2025, and approximately $8.0 million in backlog from Kustom’s established contracts and recurring subscription models, which may build on the Company’s strong momentum and forecasted run-rate growth.
“This acquisition is expected to be transformative and accretive for Cycurion shareholders,” said Kevin Kelly, Chairman and CEO of Cycurion. “By combining Kustom’s proven video and evidence management expertise with our AI-powered cybersecurity platforms, we expect to create a comprehensive, secure ecosystem for public safety agencies and enterprises. The deal is expected to deliver immediate top- and bottom-line growth, strengthen recurring revenue, and unlock significant cross-selling potential all at what we believe is an attractive valuation.”
Stan Ross, Chairman, President and CEO of Kustom commented: “We are excited to move forward under this MOU as we consider the potential sale of our Video Solutions Division to Cycurion. We believe Cycurion’s expertise and resources can help further advance the innovative video and evidence‑management technologies developed by our team, and we look forward to continuing constructive discussions as the process advances.”
**Accretive Transaction with Strong Financial Impact**
The acquisition is expected to be accretive to Cycurion’s earnings profile through:
* Immediate Revenue and Backlog Addition: Approximately $5.1 million in annual revenue from Kustom’s subscription-based video storage, cloud management, and service contracts, plus an $8.0 million secured backlog providing strong visibility into future revenues.
* Equity-Heavy Structure: Predominantly paid in Cycurion preferred stock, preserving cash for growth initiatives while aligning Kustom shareholders with Cycurion’s long-term upside.
* Margin Expansion and Synergies: Integration of high-margin recurring models with Cycurion’s cybersecurity services enables bundled offerings, operational efficiencies, and accelerated profitability in the mission-critical public safety market.
[https://finance.yahoo.com/news/cycurion-inc-announces-memorandum-understanding-133000750.html](https://finance.yahoo.com/news/cycurion-inc-announces-memorandum-understanding-133000750.html)